Buying in a high rise...is higher better?

1 Reply

I have primarily invested in houses or condos with a view (golf course, water, etc).  I came across a possible deal for a condo in a high rise.  It is about 25 stories tall with nice amenities.  My question focuses on this.  When looking at comps, there are a few units available for sale (and recently sold) in the building.  Many have the same floorplan so the differences come down to view and updates.

Having never invested in a high rise before, how much premium is placed on the floor you are on?  Is higher "better"?  Assuming you are taking an elevator regardless.  Let's say you are comparing the 10th floor to the 20th floor.  Same floorplan, same view.  Should you evaluate one more than the other?

I've always seen that people have to pay more rent for a higher apartment vs. a lower one in the same building, so it seems likely to carry over to condos as well.

That said, you could also look at intra-comps within other buildings as analogues.  My guess is you'll see a view premium that increases as you go higher.

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